About the Secretary

Steven Terner Mnuchin was sworn in as the 77th Secretary of the Treasury on February 13, 2017. As Secretary, Mr. Mnuchin is responsible for the U.S. Treasury, whose mission is to maintain a strong economy, foster economic growth, and create job opportunities by promoting the conditions that enable prosperity at home and abroad.

2.SCOPE.This directive applies to all bureaus, offices, and organizations in the Department of Treasury, including the offices of Inspector General within the Department.The provisions of this directive shall not be construed to interfere with or impede the authorities or independence of the Department’s Inspectors General.

3.POLICY.It is the policy of the TFF to provide responsive, customer-focused, cost-effective services to include financial management, procurement, travel, human resources, information technology (IT) services, and other administrative services on a fee-for-service basis.

8)Shows a commitment to customer satisfaction through superior service and cost as compared to other government shared services;

9)The functions of this service should have a clearly defined organizational structure that is separate and wholly identifiable as a service; and

10)A commitment to full cost transparency to include cost of overall budget and how that price per customer is derived from the program budget.

5.RESPONSIBILITIES

a.The ASM has overall responsibility for the effective use of the TFF authority in financing programs and operations within Treasury.As such, the ASM establishes administrative and financial management policy, procedures, and guidelines for all programs operating under the TFF legislative authority.The ASM also approves proposals for new or expanded TFF programs and obtains approval from the Director of OMB to add programs to the TFF.The ASM is responsible for the corporate management and oversight of the TFF and oversees all financial management activities relating to the programs and operations of the Department, including:

(1)Identifying Treasury franchise program support costs and allocating those costs to Sponsoring Bureau/Departmental Offices franchise functions.

(2)Preparing TFF financial statements.

(3)Coordinating preparation of budget submission(s) to OMB and Congress.

(4)Approving proposals for new or expanded TFF programs and obtains approval from the Director of OMB to add programs to the TFF.

b.Through the Deputy Assistant Secretary for Management and Budget (DASMB), the Office of Treasury Franchise Fund Management and Oversight (OTFFMO) is responsible for the overall TFF program soundness and shall:

1)oversee the financial management of all programs operating within the TFF;

2)review service delivery assessments and operational metrics for all TFF components; and

3)For DASMB signature, provide corporate response and resolution to findings or material weaknesses resulting from a financial audit of the TFF.

c.The Sponsoring Bureau/Departmental Offices are responsible for managing the operations and delivery of services to customers and shall:

1)conduct service delivery assessments and maintain operational metrics for each program;

2)develop and maintain a comprehensive set of performance measures to assess each

a.service being offered;

3)operate a cost effective TFF programs, increasing the value customers receive for the dollars spent and provide superior support to the customers;

4)develop annual financial plans for each TFF service that reflect the customer needs for the upcoming year;

5)provide monthly or quarterly reports to each customer on the status of their specific account information;

6)develop, review, and maintain an accurate cost allocation methodology for billing services to each customer; and

7)review financial reports for accuracy and ensure that corrections are made to the accounting records;

d.The Chief Financial Officers (CFO) Council, is responsible for conducting due diligence reviews of all new TFF shared services activities beforepresentation to and consideration by the Treasury Deputies Council.

e.The Treasury Deputies Council has a primary role of serving as an advisory body for TFF shared services programs so that customer perspectives are accounted for in operating decisions related to Treasury.Also, the Sponsoring Bureau/Departmental Offices holds customer engagements with Treasury and non-Treasury organizations so they can provide feedback and input into shared services.

6.GOVERNANCE. The TFF will be supported by the CFO Council which provides due diligence reviews of all proposals for new or expanded TFF programs prior to presentation to and consideration by the Deputies Council.

7.COMMUNICATION.All official correspondence and meeting minutes of the Deputies Council, CFO Council, and ASM that are related to the TFF will be documented and maintained by the OTFFMO. OTFFMO minutes will be available to CFO and Deputies Council members. The OTFFMO will determine any further distribution of correspondence and minutes, as appropriate.

8.IMPLEMENTATION.The OTFFMO will centrally coordinate and facilitate the office activities listed below in order to integrate new and existing shared services functions and holistically account for TFF activities:

9.FUND OPERATIONS.The TFF currently operates through two shared service providers, The Treasury Shared Services Program (TSSP), within Departmental Offices, and the Administrative Resource Center (ARC), within the Bureau of the Fiscal Service.

a.Treasury Shared Services Program. The TSSP, a function of the OTFFMO, provides services to Treasury and non-Treasury customers, including but not limited to the following program categories: Intelligence and Security; Human Resources; Information Technology (IT) Operations; Cyber Security; IT Performance Management; Oversight Support Services. The ASM, through the DASMB, has designated the Director, OTFFMO to oversee the day-to-day operations of the TSSP.OTFFMO manages and is responsible for TSSP’s financial, budgetary, and audit reporting requirements.

b.Administrative Resources Center.ARC provides administrative and information technology support services to both Treasury and non-Treasury customers.The Fiscal Assistant Secretary oversees ARC’s day-to-day operations, including the provision of general supervision, policy oversight, and coordination of services.In coordination with ARC, OTFFMO through its Director, will coordinate all of ARC’s financial, budgetary, and audit reporting requirements to ensure compliance with Treasury-wide policies and guidance.

c.Operating Reserves.Each shared service provider within the TFF shall maintain their respective operating reserve.Operating reserves may only be used to support the franchise functions provided by the sponsoring shared service provider Operating reserves may not be transferred between shared service providers within the TFF.

10.AUTHORITIES.

Government Management and Reform Act of 1994 (GMRA).

The Omnibus Consolidated Appropriations Act of 1997 (P.L. 104-208).

c.Consolidated Appropriations Act of 2005 (P.L. 108-447).

d.Treasury Order 101-05, Reporting Relationships and Supervision of Officials, Offices and Bureaus, Delegation of Certain Authority, and Order of Succession in the Department of the Treasury.”

11.OFFICE OF PRIMARY INTEREST.Office of the Assistant Secretary for Management